PayPal has agreed to acquire Xoom for $890 million, as the consumer payments company looks to expand into the international remittances business.

PayPal said it will pay $25 per share in cash, a 32% premium over Xoom's three-month average stock price. PayPal said it will use cash on its balance sheet to pay for the deal, which it expects to be "slightly dilutive" to non-GAAP earnings per share in fiscal 2016.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.